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Split stock gifts

  • 1.  Split stock gifts

    Posted 06-29-2021 12:19 PM
    Hello! I hope the end of the fiscal year is going well for everyone!

    I am curios to hear how everyone handles split stock gifts. Do you split the number of shares per different fund or by amount? For example, our board members gave a gift of stock and directed $3,000 to one fund. In order to allocated the even amount of $3,000 we would need to divide one share.... which is impossible to do in RE NXT - What is the best practice for handling such requests? 

    Many thanks!

    Marta Kostrzewa
    Finance and Administration Manager
    Pratt Institute

  • 2.  RE: Split stock gifts

    Posted 06-29-2021 12:30 PM
    It's going to depend on your system setup.  However, when it comes to securities and the uncertainty of the valuation on the date of the gift, I urge donors to provide percentage distributions.  So rather than say $3,000 here and $3,000 there, I ask them to indicate 50% here and there.  Or, if they want to hit a minimum amount in one fund for certain, they can say, "$3,000 in account 123, and the remainder goes to account 456."


    John H. Taylor
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987

  • 3.  RE: Split stock gifts

    Posted 06-29-2021 03:13 PM
    RE doesn't have a graceful way to deal with this. One approach is to create a pledge, and then credit the entire stock gift to the pledge. You can then credit the overage of that pledge to the other fund. This will be characterized as a cash gift to that other fund, not a stock gift. 

    Here's a link to how to do this

    You could also do the above but only assign as much stock to the first pledge as needed to pay it in full plus a small overage, and then make a second pledge to the other fund for the rest of the stock. The overage from the first stock gift can then be applied to the second pledge. This method leaves you with three giftsb in your records: two stock gifts, and one small cash gift. 

    Isaac Shalev
    Data Strategy Expert
    (917) 859-0151

    Autocorrect was used in composting this email, please excuse any typos